Why Delphi's bankruptcy means an ominous sign for fading auto industry

The Detriot News has a good article on what the Delphi bankruptcy means:

In its Chapter 11 filing in the U.S. Bankruptcy Court in New York, Delphi said a "substantial segment" of its U.S. manufacturing base will be sold off or phased out over the next two years. The company will also move to slash union wages up to 60 percent, cut health care benefits and free itself of pension obligations to tens of thousands of employees inherited when Delphi was spun off from General Motors Corp. in 1999.

With one stroke, Delphi and its chairman, Robert S. "Steve" Miller, altered the course of U.S. automotive history and cast a huge shadow over contract talks in 2007 between the Big Three and the United Auto Workers.

"I think we all understand very well that life is not going to continue the way it has been," Miller told The Detroit News after the filing Saturday. "Things have to change."

Miller said he has assured GM and Delphi's other customers that a wide range of auto parts critical to their assembly plants will continue to be built and shipped on time. He added that Delphi's U.S. work force will be largely unaffected during the first three to six months of the bankruptcy process.

Read the whole article.It appears some people are being way overpaid and that can't continue.Will GM or Ford have to declare bankruptcy in the next seven years?